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Listed data centre provider NextDC has released details of its $50 million capital raising in a statement released to the Australian Securities Exchange.

The company said $32 million will be spent on the expansion of its Melbourne data centre while $15 million will be spent on the fitout, security deposit and other costs at its recently leased Canberra facility.

The remaining $5 million will be put towards working capital and offer costs.

The money was raised through $30 million from an institutional placement and $20 million from a conditional placement with each share issue valued at $1.75.

The institutional placement will be settled by August 5 and all offers will be allotted and finalised by September 19 after an extraordinary general meeting on September 15.

The plan, announced on Friday, is the company’s second raising since it listed on the Australian Securities Exchange in December, and follows Mr Slattery’s comments after the first raising that NextDC had all the funds it needed.

He told The Australian Financial Review yesterday on Sunday the funds were needed for expansion plans.

The move will further dilute shareholders’ investments after the controversial raising of $48.9 million in April. One component of that raising was a share purchase plan. NextDC told the market it would accept $5 million through the SPP, but choose to accept all comers and took $15.3 million instead.

At the time, Mr Slattery said he would not ask the market for more. “It’s absolutely not our intention to do any capital raising for some time,” he said in late April. “Dilution is something I’m very mindful of because I’m the one being diluted the most.

“I’m happy with what we’ve got at the moment [in terms of funds and opportunities].”

Combined with the initial public offering of $40 million NextDC raised, it will have taken about $140 million from the market with no expectation of a profit until 2013-14 when analysts predict it will have a net income of $6.4 million.

Funds from the April raising were used for expansion into Perth and a long-term facility lease in Canberra, as well as a bigger upgrade for its Melbourne data centre.

The company has also flagged Auckland for potential expansion, but is understood to be concentrating on mainland sites in the short term.